Ferrari (NYSE:RACE) to Introduce New Luxury Merch in 2017
Expect Ferrari (NYSE:RACE) to introduce new luxury merchandise in Y 2017, as the luxury Supercar maker continues to seek new business opportunities beyond its iconic sports and racing cars.
The company plans to transform into a luxury brand that does more than sell sports cars and race in Formula 1 events.
The iconic Italian automobile company is currently featured on licensed merchandise such as caps, jackets and watches. But Ferrari now says it will ramp up its investments in luxury goods, in orter leverage its recognition as a premium brand.
In its 1st earnings report as a public company Monday, Ferrari said the 1st branded goods “akin to its luxury performance sport car offering” will launch next year to coincide with Ferrari’s 70th Anni.
“As indicated during the IPO process, Ferrari is aggressively exploring the luxury goods space that extends beyond luxury performance sport cars, while nurturing and expanding the Scuderia Ferrari merchandising concept, which is inextricably linked to its racing activities in F1,” Ferrari said.
Ferrari’s sponsorship, commercial and brand revenue including merchandise and racing endorsements increased 8% to $136-M in Q-1. Mostly from its stronger Formula 1 championship ranking.
Revenue grew 8.8% on sales of the recently launched 488 GTP and 488 Spyder. The Maranello, Italy-based company subsequently raised its full-year earnings outlook, saying it expects to book a record year.
COB Sergio Marchionne is taking on the additional role of CEO, according to a separate announcement Monday. Marchionne replaces Amedeo Felisa, who spent 26 years at the firm.
Mr. Marchionne has led the company into luxury goods and other areas of potential growth too.
Early this year, Ferrari signed a non-binding agreement to build a theme park in 1 of China’s primary cities and in Spain. Ferrari World opened about 5 years ago in Abu Dhabi. Expecting an announcement this year on a Ferrari theme park in the USA.
The company said its F1 Team “worked diligently” this Y 2016 racing season, and through 4 races the Scuderia has 4 Podium (Top 3) finishes so far, it is a long season. Last Sunday’s 3rd place finish at the Russian Grand Prix marked the Scuderia’s 700th Podium, I expect many more.
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